Shopify Surges After Partnership With Amazon

  • Amazon advises merchants to move to Shopify's retail software
  • Stock had already increased 70 percent since going public

Shopify Inc. soared after the Canadian software maker teamed up with online retailing giant Inc. to help merchants create their own online stores.

The shares rose 23 percent to $35.55 at the close in New York on Thursday. The stock has about doubled since going public in May.

Amazon advised the users of its own Amazon Webstore software to move their online stores to Shopify, before it shuts down the Webstore service. Shopify merchants will be able to use Amazon’s payments system and warehouses, and the companies are working to let Shopify merchants list their products on, according to a statement. Terms of the deal weren’t disclosed.

For Shopify, the deal advances plans to let its more than 175,000 merchant customers sell goods on as many platforms as possible. The company already has similar arrangements with Pinterest Inc., Facebook Inc. and Twitter Inc.

“Shopify really wants to be the platform that allows merchants to sell wherever they have customers,” Harley Finkelstein, chief platform officer for Ottawa-based Shopify, said in a phone interview.

Amazon started Webstore in 2006 to enable small-business owners to set up their own Internet stores. Since then, however, startups like Shopify and Austin-based Bigcommerce Inc. have come to dominate the market.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE